1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
adoni [48]
3 years ago
15

Units to Earn Target Income Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable

cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).Required:
Be sure to read the instructions on each panel for additional guidance.


1. Calculate the number of helmets Head-First must sell to earn operating income of $81,900.

2. Check your answer by preparing a contribution margin income statement based on the number of units calculated
Business
1 answer:
ANTONII [103]3 years ago
6 0

Explanation:

1. The computation of the number of helmets sell to earn operating income is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $75 - $40

= $30

So, the number of helmets sold is

= ($49,500 + $81,900) ÷ ($30)

= 4,380 helmets

2. And , the contribution margin income statement is presented below:

Sales (4,380 helmets × $75)                     $328,500

Less: Variable cost (4,380 helmets × $45)  ($197,100)  

Contribution margin $131,400

Less: Total fixed cost (49,500)  

Net income                $81,900

You might be interested in
Computing Income Taxes
Anastaziya [24]

Answer:

The​ corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

<u><em>Net profit Calculation</em></u>

Sales                                                                                 $ 3,130,000

cost of goods sold and the operating expenses          ($ 2,080,000)

Interest expense                                                              ( $ 377,000)

Net profit                                                                           $ 673,000

<u><em>Tax liability Calculation</em></u>

Income fall under Tax bracket of  34%  ($75,001 to ​$10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

​

5 0
3 years ago
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,600 account of a customer
umka21 [38]

Answer: Please see explanation for answers

Explanation:

1. Journal entry to record bad debt on January 31st

Date            Account Titles and Explanation            Debit            Credit

Jan. 31st      Allowance for doubtful account            $1,600

Account receivables  ( Customer C. Green)                                  $1.600

2. Journal entry to record recovery of bad debt on March 9

A) To reinstate Amount previously written off

Date            Account Titles and Explanation                  Debit            Credit

March 9 Account receivables  ( Customer C. Green)    $1,100

Allowance for doubtful account                                                          $1,100

B) To record payment of account

Date            Account Titles and Explanation             Debit            Credit

March 9            Cash                                                   $1,100

   Account receivables( Customer C. Green)                                  $1,100

3 0
2 years ago
Read the description of following adjustments that are required at the end of the accounting period for Paulo Consulting Service
exis [7]

Answer:

A. Equipment was purchased on January 1, 2019, for $49,770 and has an estimated useful life of 5 years with a salvage value of 4,270.

Depreciation is computed using the straight-line method.

depreciation expense per year = ($49,770 - $4,270) / 5 years = $9,100

depreciation expense per month = $9,100 / 12 = $758.33

January 31, 2019, depreciation expense

Dr Depreciation expense 758.33

    Cr Accumulated depreciation - equipment 758.33

B. Signed a 5-month contract for $5,490 of prepaid advertising on January 1, 2019.

advertising expense per month = $5,490 / 5 = $1,098

January 31, 2019, advertising expense

Dr Advertising expense 1,098

    Cr Prepaid advertising 1,098

C. Prepaid rent for the year on January 1, 2019, in the amount of 22,560.

rent expense per year = $22,560 / 12 = $1,880

January 31, 2019, rent expense

Dr Rent expense 1,880

    Cr Prepaid rent 1,880

D. Purchased supplies for $4,200 on January 1, 2019. Inventory of supplies was $2,850 on January 31, 2019.

supplies expense = $4,200 - $2,850 = $1,350

January 31, 2019, supplies expense

Dr Supplies expense 1,350

    Cr Supplies 1,350

8 0
3 years ago
In may 1991, car and driver described a jaguar that sold for 980,000 dollars. suppose that at that price only
Andrej [43]
<span>The consumer surplus is $9,237,704,920</span>
6 0
3 years ago
the fact that output gaps will not last indefinitely, but will be closed by rising or falling prices is the economy's:
serg [7]

The economy's self-correcting property is the fact that output gaps won't last indefinitely, but will be closed by rising or falling prices.

The output gap is the difference, expressed as a percentage of gross domestic product, between an economy's actual output and its highest potential output. An output gap can be either favorable or negative for a nation.

A negative output gap indicates that the economy's actual output is below its maximum capacity, whereas a positive output gap indicates that the economy is beating expectations because its actual output is higher than its acknowledged maximum output. The output gap helps paint a picture of how the economy is doing because the gross domestic product is used in its computation.

To learn more about output gaps, visit the link below:

brainly.com/question/29433322

#SPJ4

3 0
1 year ago
Other questions:
  • Which computer science professor has won an Oscar?<br> Gauss<br> Fedkiw<br> Pythagoras<br> Edison
    14·1 answer
  • Assume lawyer services are priced by the hour and elasticity of demand for a particular lawyer is 0.6. If she were to increase h
    14·1 answer
  • What is one of the most critical areas in a quality control program?
    15·1 answer
  • The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered
    11·1 answer
  • Valuetronics, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. In ord
    5·1 answer
  • Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00
    12·1 answer
  • At December​ 31, 2018​, Salish Hardware owes $ 4 comma 800 on accounts​ payable, plus salaries payable of $ 5 comma 300 and inco
    9·1 answer
  • As the number of urban areas grew in the state in the late nineteenth and early twentieth centuries, the management of local aff
    5·1 answer
  • The balance in retained earnings at December 31, 2020 was $1440000 and at December 31, 2021 was $1168000. Net income for 2021 wa
    11·1 answer
  • Arts stream padhne se aacha to python ya java ki book pdf download kar lo usse padh lo
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!